+91-22-489139097 Best Medium Duration Funds 2026
Are you looking for a medium-term investment option? Do you have an idle money that you would want to invest for next 3-4 years? If yes, then here’s a fund for you- Medium Duration Funds! Medium Duration Funds are a type of debt Mutual Fund that invests in debt and money market instruments with a Macaulay duration of three to four years. Let’s understand more about this fund, along with looking at some of the best medium duration funds to invest.
Medium Duration Debt Funds- Overview
Debt is typically categorised in terms of maturity. The terms of debt funds are – low duration funds, short duration, medium duration, medium to long duration and long duration funds. Medium Duration Funds invests in debt securities with a maturity of 3-4 years. The maturity of this fund is lower than short duration funds and higher than long duration funds.
Typically, the interest rate of medium duration funds is greater than that of the short duration fund. Ideally, these funds tend to perform when the short-term interest rates are high. There is a popular belief that debt funds are risk-free, but they are not completely risk-free. There are some standard risks that are attached to debt assets like- interest rate risk, credit risk, and liquidity risk.
If we look at the interest rate-risk of medium duration funds it is higher than that of the short duration fund. So, investors who are planning to invest in these type of funds should be able to tolerate little risk in the investments.
Features of Investing in Debt Mutual Funds
- In debt funds, one can withdraw the required funds from the investment at any point of time, and also can let the remaining fund stay invested.
- Debt funds are ideally considered to earn optimal returns over regular period of time. For instance, choosing dividend payout can be an option for a regular income flow.
- Unlike Equity Funds, debts are not affected by the market Volatility, in fact they carry the standard risk like interest rate risk and credit risk.
- In debt funds, you can generate fixed income every month by starting a Systematic Withdrawal Plan (SWP is a reserve of SIP/STP) to withdraw a fixed amount on a monthly basis. Also, you can change the amount of the SWP when required.
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Fund Selection Methodology used to find 7 funds
Top 7 Best Performing Medium Duration Funds 2026 - 2027
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Medium Term Plan Growth ₹43.81
↑ 0.01 ₹3,280 2.6 3.5 8.7 9.9 10.9 8.05% 3Y 1M 20D 4Y 7M 24D Kotak Medium Term Fund Growth ₹24.5478
↑ 0.01 ₹1,915 2.7 3.1 6.8 8 8.9 8.2% 2Y 11M 23D 4Y 9M 22D Nippon India Strategic Debt Fund Growth ₹16.8715
↑ 0.01 ₹150 2.3 2.9 6 7.9 9.6 7.76% 3Y 8M 26D 5Y 9M 14D ICICI Prudential Medium Term Bond Fund Growth ₹48.651
↑ 0.02 ₹5,481 2.8 3.8 7.4 7.9 9 8.06% 3Y 4M 2D 6Y 3M 29D Axis Strategic Bond Fund Growth ₹30.1601
↑ 0.01 ₹2,098 2.6 3.2 6.6 7.8 8.2 8.02% 3Y 3M 7D 4Y 11M 1D SBI Magnum Medium Duration Fund Growth ₹55.0106
↑ 0.02 ₹6,498 2.9 3.7 6.7 7.4 7.5 8.05% 3Y 25D 4Y 4M 20D HDFC Medium Term Debt Fund Growth ₹60.4093
↑ 0.03 ₹3,614 2.6 3.3 6.4 7.3 7.7 8.05% 3Y 7D 4Y 5M 16D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Sep 26 Research Highlights & Commentary of 7 Funds showcased
Commentary Aditya Birla Sun Life Medium Term Plan Kotak Medium Term Fund Nippon India Strategic Debt Fund ICICI Prudential Medium Term Bond Fund Axis Strategic Bond Fund SBI Magnum Medium Duration Fund HDFC Medium Term Debt Fund Point 1 Lower mid AUM (₹3,280 Cr). Bottom quartile AUM (₹1,915 Cr). Bottom quartile AUM (₹150 Cr). Upper mid AUM (₹5,481 Cr). Lower mid AUM (₹2,098 Cr). Highest AUM (₹6,498 Cr). Upper mid AUM (₹3,614 Cr). Point 2 Established history (17+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (21+ yrs). Established history (14+ yrs). Established history (22+ yrs). Oldest track record among peers (24 yrs). Point 3 Top rated. Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 2★ (bottom quartile). Rating: 4★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 8.74% (top quartile). 1Y return: 6.84% (upper mid). 1Y return: 6.03% (bottom quartile). 1Y return: 7.36% (upper mid). 1Y return: 6.56% (lower mid). 1Y return: 6.74% (lower mid). 1Y return: 6.40% (bottom quartile). Point 6 1M return: 0.29% (bottom quartile). 1M return: 0.32% (lower mid). 1M return: 0.25% (bottom quartile). 1M return: 0.41% (upper mid). 1M return: 0.30% (lower mid). 1M return: 0.55% (top quartile). 1M return: 0.38% (upper mid). Point 7 Sharpe: 1.10 (top quartile). Sharpe: 0.34 (upper mid). Sharpe: 0.05 (bottom quartile). Sharpe: 0.58 (upper mid). Sharpe: 0.33 (lower mid). Sharpe: 0.18 (lower mid). Sharpe: 0.14 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 8.05% (upper mid). Yield to maturity (debt): 8.20% (top quartile). Yield to maturity (debt): 7.76% (bottom quartile). Yield to maturity (debt): 8.06% (upper mid). Yield to maturity (debt): 8.02% (bottom quartile). Yield to maturity (debt): 8.05% (lower mid). Yield to maturity (debt): 8.05% (lower mid). Point 10 Modified duration: 3.14 yrs (lower mid). Modified duration: 2.98 yrs (top quartile). Modified duration: 3.74 yrs (bottom quartile). Modified duration: 3.34 yrs (bottom quartile). Modified duration: 3.27 yrs (lower mid). Modified duration: 3.07 yrs (upper mid). Modified duration: 3.02 yrs (upper mid). Aditya Birla Sun Life Medium Term Plan
Kotak Medium Term Fund
Nippon India Strategic Debt Fund
ICICI Prudential Medium Term Bond Fund
Axis Strategic Bond Fund
SBI Magnum Medium Duration Fund
HDFC Medium Term Debt Fund
*Above is list of best Medium Duration funds having AUM/Net Assets above 100 Crore. Sorted on Last 3 Year Return.
The primary investment objective of the Scheme is to generate regular income through investments in debt & money market instruments in order to make regular dividend payments to unit holders & secondary objective is growth of capital. Below is the key information for Aditya Birla Sun Life Medium Term Plan Returns up to 1 year are on The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved Research Highlights for Kotak Medium Term Fund Below is the key information for Kotak Medium Term Fund Returns up to 1 year are on (Erstwhile Reliance Classic Bond Fund) To generate income through investments in a range of debt and money market instruments of various maturities with a view to maximizing income while
maintaining the optimum balance of yield, safety and liquidity. The scheme would focus its investments predominantly in corporate bonds of various maturities and across ratings for the purpose of achieving regular income and
capital appreciation. Research Highlights for Nippon India Strategic Debt Fund Below is the key information for Nippon India Strategic Debt Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Corporate Bond Fund) To generate income through investments in a range of debt and money market instruments of various maturities with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity. Research Highlights for ICICI Prudential Medium Term Bond Fund Below is the key information for ICICI Prudential Medium Term Bond Fund Returns up to 1 year are on (Erstwhile Axis Income Fund) To generate optimal returns in the medium term while maintaining liquidity of the portfolio by investing in debt and money market instruments. Research Highlights for Axis Strategic Bond Fund Below is the key information for Axis Strategic Bond Fund Returns up to 1 year are on (Erstwhile SBI Regular Savings Fund) To provide attractive returns to the Magnum holders / Unit holders either through periodic dividends or through capital appreciation through an actively managed portfolio of debt,
equity and money market instruments. Research Highlights for SBI Magnum Medium Duration Fund Below is the key information for SBI Magnum Medium Duration Fund Returns up to 1 year are on (Erstwhile HDFC High Interest Fund - Short Term Plan) To generate income by investing in a range of debt and money market instruments of various maturity dates with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. The objective is to cater to the needs of investors with shorter term investment horizons and
to provide stable returns over shorter periods. Research Highlights for HDFC Medium Term Debt Fund Below is the key information for HDFC Medium Term Debt Fund Returns up to 1 year are on 1. Aditya Birla Sun Life Medium Term Plan
Aditya Birla Sun Life Medium Term Plan
Growth Launch Date 25 Mar 09 NAV (04 Sep 26) ₹43.81 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹3,280 on 31 Jul 26 Category Debt - Medium term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.55 Sharpe Ratio 1.1 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Yield to Maturity 8.05% Effective Maturity 4 Years 7 Months 24 Days Modified Duration 3 Years 1 Month 20 Days Growth of 10,000 investment over the years.
Date Value Returns for Aditya Birla Sun Life Medium Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.3% 3 Month 2.6% 6 Month 3.5% 1 Year 8.7% 3 Year 9.9% 5 Year 12% 10 Year 15 Year Since launch 8.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 10.9% 2024 10.5% 2023 6.9% 2022 24.8% 2021 7.1% 2020 8.1% 2019 -4.4% 2018 5.6% 2017 7% 2016 10.9% Fund Manager information for Aditya Birla Sun Life Medium Term Plan
Name Since Tenure Data below for Aditya Birla Sun Life Medium Term Plan as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. Kotak Medium Term Fund
Kotak Medium Term Fund
Growth Launch Date 25 Mar 14 NAV (04 Sep 26) ₹24.5478 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹1,915 on 31 Jul 26 Category Debt - Medium term Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.63 Sharpe Ratio 0.34 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-18 Months (2%),18 Months and above(NIL) Yield to Maturity 8.2% Effective Maturity 4 Years 9 Months 22 Days Modified Duration 2 Years 11 Months 23 Days Growth of 10,000 investment over the years.
Date Value Returns for Kotak Medium Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.3% 3 Month 2.7% 6 Month 3.1% 1 Year 6.8% 3 Year 8% 5 Year 6.4% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 8.9% 2024 9% 2023 6.1% 2022 3.2% 2021 4.7% 2020 8.5% 2019 7% 2018 5.4% 2017 6.6% 2016 10.9% Fund Manager information for Kotak Medium Term Fund
Name Since Tenure Data below for Kotak Medium Term Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 3. Nippon India Strategic Debt Fund
Nippon India Strategic Debt Fund
Growth Launch Date 26 Jun 14 NAV (04 Sep 26) ₹16.8715 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹150 on 31 Jul 26 Category Debt - Medium term Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.08 Sharpe Ratio 0.05 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-12 Months (1%),12 Months and above(NIL) Yield to Maturity 7.76% Effective Maturity 5 Years 9 Months 14 Days Modified Duration 3 Years 8 Months 26 Days Growth of 10,000 investment over the years.
Date Value Returns for Nippon India Strategic Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.2% 3 Month 2.3% 6 Month 2.9% 1 Year 6% 3 Year 7.9% 5 Year 6.3% 10 Year 15 Year Since launch 4.4% Historical performance (Yearly) on absolute basis
Year Returns 2025 9.6% 2024 8.3% 2023 7% 2022 2% 2021 17.4% 2020 -23.5% 2019 -3.4% 2018 4.7% 2017 6.9% 2016 11.1% Fund Manager information for Nippon India Strategic Debt Fund
Name Since Tenure Data below for Nippon India Strategic Debt Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. ICICI Prudential Medium Term Bond Fund
ICICI Prudential Medium Term Bond Fund
Growth Launch Date 15 Sep 04 NAV (04 Sep 26) ₹48.651 ↑ 0.02 (0.05 %) Net Assets (Cr) ₹5,481 on 31 Jul 26 Category Debt - Medium term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 1.37 Sharpe Ratio 0.58 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Yield to Maturity 8.06% Effective Maturity 6 Years 3 Months 29 Days Modified Duration 3 Years 4 Months 2 Days Growth of 10,000 investment over the years.
Date Value Returns for ICICI Prudential Medium Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.4% 3 Month 2.8% 6 Month 3.8% 1 Year 7.4% 3 Year 7.9% 5 Year 6.7% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 9% 2024 8% 2023 7% 2022 4.2% 2021 5.5% 2020 10.4% 2019 9.2% 2018 5.1% 2017 6.5% 2016 10.2% Fund Manager information for ICICI Prudential Medium Term Bond Fund
Name Since Tenure Data below for ICICI Prudential Medium Term Bond Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 5. Axis Strategic Bond Fund
Axis Strategic Bond Fund
Growth Launch Date 28 Mar 12 NAV (04 Sep 26) ₹30.1601 ↑ 0.01 (0.05 %) Net Assets (Cr) ₹2,098 on 31 Jul 26 Category Debt - Medium term Bond AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.08 Sharpe Ratio 0.33 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-12 Months (1%),12 Months and above(NIL) Yield to Maturity 8.02% Effective Maturity 4 Years 11 Months 1 Day Modified Duration 3 Years 3 Months 7 Days Growth of 10,000 investment over the years.
Date Value Returns for Axis Strategic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.3% 3 Month 2.6% 6 Month 3.2% 1 Year 6.6% 3 Year 7.8% 5 Year 6.7% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2025 8.2% 2024 8.7% 2023 7.3% 2022 3.8% 2021 5.2% 2020 10.5% 2019 7.1% 2018 6.7% 2017 7.5% 2016 11.6% Fund Manager information for Axis Strategic Bond Fund
Name Since Tenure Data below for Axis Strategic Bond Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 6. SBI Magnum Medium Duration Fund
SBI Magnum Medium Duration Fund
Growth Launch Date 12 Nov 03 NAV (04 Sep 26) ₹55.0106 ↑ 0.02 (0.04 %) Net Assets (Cr) ₹6,498 on 31 Jul 26 Category Debt - Medium term Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.22 Sharpe Ratio 0.18 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-12 Months (1.5%),12 Months and above(NIL) Yield to Maturity 8.05% Effective Maturity 4 Years 4 Months 20 Days Modified Duration 3 Years 25 Days Growth of 10,000 investment over the years.
Date Value Returns for SBI Magnum Medium Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.5% 3 Month 2.9% 6 Month 3.7% 1 Year 6.7% 3 Year 7.4% 5 Year 6.3% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.5% 2024 8.1% 2023 7.2% 2022 3.4% 2021 3.8% 2020 12.3% 2019 11.1% 2018 6.2% 2017 7.6% 2016 14% Fund Manager information for SBI Magnum Medium Duration Fund
Name Since Tenure Data below for SBI Magnum Medium Duration Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 7. HDFC Medium Term Debt Fund
HDFC Medium Term Debt Fund
Growth Launch Date 6 Feb 02 NAV (04 Sep 26) ₹60.4093 ↑ 0.03 (0.05 %) Net Assets (Cr) ₹3,614 on 31 Jul 26 Category Debt - Medium term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.29 Sharpe Ratio 0.14 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Yield to Maturity 8.05% Effective Maturity 4 Years 5 Months 16 Days Modified Duration 3 Years 7 Days Growth of 10,000 investment over the years.
Date Value Returns for HDFC Medium Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0.4% 3 Month 2.6% 6 Month 3.3% 1 Year 6.4% 3 Year 7.3% 5 Year 6.1% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.7% 2024 8.1% 2023 6.7% 2022 2.9% 2021 5% 2020 10% 2019 9.1% 2018 5.6% 2017 5.5% 2016 11.5% Fund Manager information for HDFC Medium Term Debt Fund
Name Since Tenure Data below for HDFC Medium Term Debt Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity
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Research Highlights for Aditya Birla Sun Life Medium Term Plan